# A municipal bond carries a coupon rate of 7.50% and is trading at par. What would be the equivalent

Feb 3rd, 2012
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A municipal bond carries a coupon rate of 7.50% and is trading at par. What would be the equivalent taxable yield of this bond to a taxpayer in a 40% tax bracket?

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A municipal bond carries a coupon rate of 7.50% and is trading at par.What would be the equivalent taxable yield of this bond to a taxpayer in a 40% tax bracket? (Round your answer to 2 decimal places.)Equivalent taxable yield% Explanation:Equivalent taxable yield =Rate onmunicipal

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